Proceedings of 31st International Business Research Conference

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Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
Survival Approaches of Small-Scale Food Processing
Enterprises in Imo State, Nigeria
Canice Sonny, Nwosu and Jane and Munonye
The study investigated the survival approaches of small-scale food processing
enterprises in Imo state, Nigeria. The study last for a year and six months. One
hundred and twenty small-scale food processors were purposively selected from
three major urban areas. Structural questionnaire was used for the data collection.
Descriptive statistics and regression analysis were used for data analysis. The results
of the study identified thirteen types of small-scale food processing enterprises in the
state. Prominent among them were garri processing (25%), palm kernel cracking
(20%) and palm oil processing (20%). Major enterprises’ goals were profit making
(100%), enterprise growth (92.5%), productivity (88.3%), survival (85.8%) and market
standing (83.3%). All (100%) the processors undertook their type of enterprise by
reason of generating greater income when compared with primary products. Seven
survival approaches were identified. The key commonly adopted for survival under
the existing business environment were enterprise diversification/incorporation of
other enterprises (98.3%), use of market outlets (65.8%), use alternative energy
sources (62.5%) and improvement of products through innovation (58.3). Level of
education, years of experience and annual income were positive and significant
determinants of employing the identified survival approaches. Major constraints to
growth of the enterprises were inadequate capital (95.8%), poor infrastructural
facilities (83.3%), seasonal scarcity and high cost of raw materials (81.7%) and high
cost of capital/poor access to loans (54.2%). Therefore, policy makers and
governments should support small-scale food processing enterprises through
formulation of policies and legislations that will promote and sustain the adoption of
identified survival approaches for growth and survival of the small-scale food
processing enterprises in the state.
Name of the track: Management.
1.0. Introduction
Food processing constitutes a vital subsector in agribusiness especially in
area of value addition to food crop and animal products. Food processing has two
main functions; making food products more digestible and preservation to lengthen
their shelf life. In Nigeria, food processing enterprises operate mostly in small-scale.
Small-scale enterprises are defined as enterprises whose total fixed assets and
working capital is less than N500, 000 as but more than N50, 000 and employed not
more than 50 persons (Asogwa, 2009). Small-scale enterprises are characterized by
ownership and management often resting on one person; they tend to have small
share and no control of the market; capital is usually small and made available by
the owner(s); they have total assets of usually less than N10, 000,000; and they
employ usually less than 100 persons (Chukwuma, 1999).
Small-scale enterprises play a vital role for the growth and development of Nigeria
economy (Onugu, 2005). It has been observed that if this small-scale enterprises’
sector is to survive and grow in the present harsh and volatile business environment,
appropriate approaches must be developed and adopted by entrepreneurs
___________________________________________________________________
Dr. Canice Sonny, Nwosu and Dr. Jane, Munonye, Department of Agricultural Economics, Extension
and Rural Development, Imo State University, Owerri, Imo State, Nigeria,
E-mail: uchenna4ever@yahoo.com
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
(Omeresan, 2004). The Federal and State governments have made efforts to ensure
the survival of these small-scale enterprises recognising their vital role towards
economic development (Amazu, et al., 2012). Programmes promoted by
governments to strengthen the survival of these small-scale enterprises include
National Economic Empowerment Development Strategy (NEEDs); Small and
medium Industries Equity Investment Scheme (SMIEIS); Mandatory Minimum Credit
Allocation by Banks to Small-scale Enterprises; introduction of other specialised
schemes, including the World Bank Small and Medium Scale Enterprises (SME I and
SME II Loan Programmes); the Agricultural Credit Guarantee Scheme Fund
(ACGSF); and the Small and Medium Enterprise Development Agency of Nigeria
(SMEDAN) ( Nwajiuba et al., 2012).
Significant progress has been made in understanding the characteristics, roles,
growth and profitability of small and medium scale enterprises in Nigeria (Ayozie,
2011; Achoja, 2011; Sani and Danwanka, 2011; Ayozie and Latinwo, 2010; Eneh,
2010; Ayozie, 2004; Knights et al., 2003a; and Yomere, 1995). But the empirical
evidence on the survival approaches adopted by small-scale food processors appear
scanty, isolated and devoid of in depth analysis. The study assessed the types,
goals, survival approaches and its socioeconomic determinants and constraints to
growth of small-scale food process enterprises in Imo State, Nigeria.
2.0. Methodology
The study was conducted in Imo State, Nigeria. Three main urban areas
were purposely selected from each of the three Agricultural Zones of the state
namely; Okigwe, Orlu and Owerri. These urban areas were purposely chosen
because of large number of small-scale food processing enterprises in the areas.
Imo State is located between Latitudes 4o45’N and 6017’N and Longitudes 6035’ and
809’E (Imo State Government, 1993). The State is bounded in the East, West, North
and South by Abia, Delta, Anambra/Ebonyi and Rivers States, respectively. The
state has land area of 7,480km2 with a population of 3,934,899 and population
density of 526/km2 (NPC, 2006).
Forty small-scale food processing enterprises each from the three main
purposely selected urban areas, thereby given a total sample size of one hundred
and twenty (120) small-scale food processing enterprises. The lists of small scale
food processing enterprises collected from Imo State Ministry of Commerce and
Industry and Imo State Chambers of Commerce, Agriculture and industry are used
as sample frame from which the samples were selected. Primary data were collected
using a set of questionnaire administered to the small-scale food processing
enterprise operators. Data collected were analysed using frequency distribution
tables, percentages, mean, bar chart, and regression analysis.
The implicit model of the regression is stated as follows, Y = f(X1,X2,X3,X4,X5,e) .
Where: Y = Number of business strategies adopted;
X1 = Small-scale food processing age (year);
X2 = Small-scale food processor’s gender (Dummy variable; Male = 1,
Female= 0);
X3 = Small-scale food processor’s educational Level (Years spent school);
X4 = Small-scale food processor’s experience (Years);
X5 = Small-scale food processor’s income (Naira); and
e = Error term.
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
3. 0. Findings and Discussion
3.1. Small-Scale Food Processing Enterprise Types and Goals of the
Processors
3.1.1. Types of Small-Scale Food Processing Enterprises
The study identified the following types of small-scale food processing
enterprises (figure 1) in the state:
 Garri processing: The raw material (cassava) is a primary product direct from
the farm. It is processed into garri by the small-scale food processors. Twenty
five percent of small-scale food processors are involved in the garri
processing.
 Palm kernel cracking: This enterprise involves in separation of palm kernel
from the shell. Both the kernel and shell are economically useful products.
About the 20% of the processors are involved in this processing business.
 Palm oil processing: This involves the processing of oil palm fruits through
hydraulic press method or use of other simple local made devices to produce
palm oil and other derivatives. About 20% of the processors are engaged in
palm oil processing.
 Grain milling: About 6% of the processors are engaged in grain milling, the
enterprise involves the grinding of grain into flour of different types depending
on the type of grain.
 Bakery: Four percent of the sampled processors in the state are involved in
bakery activity, the enterprise involves in the production of confectioneries
such as breads, cakes etc.
 Moi-Moi production: This involves the use of beans and other condiments
which are processed and cooked to produce food called Moi-Moi. About 4% of
the processors are involved in the activity and mostly women.
 Plantain Chips: The activity involves using either ripped or un-ripped plantain
to produce chips which are fried to produce a kind of food packaged in water
proof bags. About 4% of the processors are involved in the activity.
 Bean cake (locally called Akara): This typically involves grinding of beans into
paste with condiments and fried into small balls. The activity involves 3.5% of
the processors. It is gender specific. Women are the processors.
 Yoghurt: This involves fermenting and pasteuring of milk. Additives and
preservatives are also added. About 3.5% of the processors are involved in
this small-scale food processing enterprise. The low involvement of food
processors in this enterprise could be attributed to fact that the enterprise
requires high technical capacity of entrepreneurship which may be lacking in
most of the processors in the area.
 Cassava fufu: This involves production of dough from ground or powdered
cassava used as staple food. About 3.5% of the processors are engage in the
activity. The low percentage involvement of food processors could be
attributed to the fact that processors in the area are mainly involved in
processing cassava into garri which is not labour intensive and more
profitable compare to fufu production.
 Water Sachet: The activity involves packaging of portable water from treated
bore-hole into water proof bags. Low percentage (2.5%) involvement of
processors in the enterprise could be due to high technical capacity required
in the enterprise which most processors lack.
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
 Suya/meat roasting: The enterprise involves roasting of meat predominantly
from beef, chicken and mutton. Very low percentage (1.5%) of the processors
is involved in this activity. The enterprise is ethnic specific. It is engaged by
Nigerians from Hausa extraction. This is responsible for the low involvement
of food processors in the activity in the state since the people of the state are
predominantly Ibo tribe.
 Palm Kernel oil extraction: The palm kernel is grinded and the oil extracted
from it through a specialized processing system. Only about 1.5% of the
processors are engaged in this enterprise because the processing system is
capital intensive and requires specialized skills. All the above identified types
of small-scale food processing enterprises and percentage distribution of the
processors based on type of food processing undertaken are presented in
figure1.
The raw materials for these enterprises are essentially outputs of agricultural
sector, which are available in the locality signifying that small-scale food processing
enterprises provide ready market outlets, while adoption of better business strategies
and incentive for continuous value addition of these agricultural products will
maximize the processors’ incomes. This is in agreement with Sani and Danwanka
(2011) which stated that it is imperative, that steady supply of produce through a
well-developed market infrastructure, effective marketing information, and provision
of inputs and adopting of better business strategies would make the processors to
maximize income and the consumers of such products to pay little.
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
Figure 1: Percentage distribution of small-scale
food processors based on type of activity
30
25
25
20
Percentage
20
20
15
10
5
6
4
4
4
3.5
3.5
3.5
2.5
1.5
1.5
0
Type of small-scale food processing enterprise
3.1.2. Small-scale food processing enterprise goals of the processors
In any business enterprise, the goals of the venture are specifically and
clearly stated. In the context of the small-scale food processing enterprises, there
are usually a few set goals. Goals indicated by the various small-scale food
processors were profitability, productivity, growth, innovation, market standing, social
responsibilities and manpower development. Table 1 reveals the aspirations of
small-scale food processors in term of enterprise goals. All the processors (100%)
indicated profitability as their main goal, 92.5% of the respondents indicated growth,
while 88.3% 75.0%, 85.8%, 83.3%, 70.8% and 62.5% small-scale processors
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
indicated productivity, innovation, survival, market standing, social responsibility and
man power development goals, respectively (Table1). All the small-scale food
processors interviewed indicated profitability as one of their goals probably due to
the fact that businesses exist to make profits. According to Anyanwu (2006), profit in
itself provides an attraction in business. Hence, profit appears to be the most
veritable measure of a form success and efficiency in the use of resources. From
Table 1, the second choice of most of the processors was growth. This is because
the processors do not only aim at expanding its share of the market but looks at
other competitors within the industry. The small-scale food processors in their
enterprise goals as shown in Table 1 clearly suggests that all the enterprise goals
are laudable and can only be realized through well-articulated, conceptualized and
appropriate approaches.
Table1: Distribution of small-scale food processors base on enterprise goals
Goal
Frequency
Percentage
Profitability
Growth
Productivity
Innovation
Survival
Market standing
Social responsibility
Man power development
120
111
106
90
103
100
85
75
100
92.5
88.3
75.0
85.8
83.3
70.8
62.5
*Multiple responses recorded.
3.2 Survival Approaches and Socioeconomic Determinants of the Survival
Approaches Adopted by Small-Scale Food Processors
3.2.1 Survival approaches by small-scale food processors
The survival of any business is not by chance. Such survival must be planned
for and adequate approaches mapped out to ensure success and continuum in
business. Therefore approaches to be adopted must be completely dependent on
the peculiarity of problems and economic situation facing the enterprise. Six survival
approaches adopted by small-scale food processors were identified. They include
enterprise diversification/ incorporation of new enterprises, new market outlets,
improvement of products through innovation, the use of alternative sources of
energy, new management technique, product differentiation, and use of formal
institutional credit.
Table 2 shows that 98.3% of small-scale food processors either diversified
their products range or incorporate new enterprises in their food processing
business. For instance, palm oil processors diversified into vegetable oil and black
soap production. However, some of small-scale food processors (58.3%) opted for
improvement of their products through innovations in areas of improvement of
product taste, packaging and other value addition. Some food processors asserted
that such improvements ensure their customers satisfaction and loyalty. This agrees
with Anyanwu (2006) that emphasized that any organization that wants to survive
must pay attention to the continuous improvement of its products and services.
About 65.8% of the small-scale food processors indicated that use of new
market outlets is good survival approach for their food processing businesses. Right
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
choice of market outlets will ensure good outlet for products. Besides, the study
observed that most of the small-scale food processors do not sell to distributors
because their outputs are small. They rather make use of retailers and direct sale to
final consumers. By this, they are able to beat the dominating actions of big food
processing companies and survive economic competitive environment.
Energy supply is a major problem among business entrepreneurs. Public
electricity source of energy is very unreliable in Nigeria for any meaningful business
particularly as regards food processing enterprises. About 62.5% of the sampled
small-scale food processors opted for use of alternative sources of energy as a
survival approach for their food processing enterprises. Such alternative sources of
energy are private power generating set (generator), firewood, charcoal and manual
power.
A significant proportion of the small-scale-food processors (45.8%) needed
good management helps in planning and organization of their businesses. The study
observed that the small-scale food processors sought for assistance in some
managerial functions such as adaptation methods to the ever changing business
environment, obtaining of formal institutional credit and accurate keeping of business
records.
About 25.8% of the small-scale food processors indicated products
differentiation as a business survival approach expected to be rewarding. Some the
products differentiation include packaging products in foils or water proof bags,
bottling of products, using of labels and National Agency for Food and Drug
Administration and Control (NAFDAC) numbers which assure quality of such
products. Product differentiation aims at making product unique and differentiating
such product from others in the market.
Table 2: Distribution of Small-Scale Food Processors Based on Types of
Survival Approaches
Business approach
Percentage
Enterprise diversification/incorporation
of other enterprises
Use of new market outlets
Use of alternative energy sources
Improvement of products through innovation
Use of good management technique
Product differentiation
Use of formal institutional credit

Frequency
118
79
75
70
55
31
25
98.3
65.8
62.5
58.3
45.8
25.8
20.8
Multiple responses recorded.
Low percentage (20.8%) of the respondents favoured use formal institutional credit
as survival approach to their small-scale food processing enterprises. However, most
of the small-scale food processors affirmed that they prefer funding their businesses
with their personal savings because of high interest rate charged by commercial
banks.
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
3.2.2. Socioeconomic Determinants of the Survival Approaches Adopted by
Small-Scale Food Processors
The extent to which the socioeconomic variables (age, gender, educational level,
business experience and annual income of the small-scale food processors)
influenced the rate of adoption of the identified survival approaches by the
processors were determined using multiple regression analysis. These key
socioeconomic variables of the small-scale food processors were regressed on the
rate of their adoption of the survival approaches. The semi-log functional form was
chosen as the lead equation. This was because it gave the best fit. The equation
was Y = -9.935 -0.730LNX1 -0.474LNX2 + 0.059LNX3 + 0.922LNX4 +1.513LNX5.
Table 3 showed all the relevant parameter estimates. The regression line
gave coefficient of multiple determination (R2) of 0.722. This implied that the ability of
the small-scale food processors to employ the identified survival approaches was
dependent on their socioeconomic characteristics up to 72.2%. While 27.8% was
explained by some other important variables not included in the model and were
taken care of by the disturbance term. The F-value (14.478) result showed that the
combined impact of the independent variables on the adoption rate of the survival
approaches was significant.
The interpretation of the regression of the independent variables estimates
are as follows:
Small-scale food processors’ education level (X3) positively influenced adoption of
small-scale food processing enterprises’ survival approaches. It is significant at 5%
level of probability. This shows that the more educated small-scale food processors
adopted higher number of business approaches than the less educated processors.
Furthermore, the small-scale food processors with higher education were much more
aware of sources of information and more efficient in evaluating and interpreting
information on small-scale food processing business survival strategies than those
less educated. Education is, therefore, very important in improving one’s ability to
access, decode and understanding information relevant to making profitable and
innovative decisions.
Business experience (X4) is positively related to adoption of small-scale food
processing enterprises’ survival approaches. The relationship is significant at 5%
level of probability. This means that the more experienced small-scale food
processors adopted more of the enterprises’ survival approaches than the less
experienced small-scale food processors. Therefore, experience is a function of
knowledge one has about business. That is, experienced processors are better
equipped in terms of knowledge and information on small-scale food processing
(Nwosu et al, 2012).
The processors’ annual income (X5) was found to be positively and
significantly influenced adoption of small-scale food processing enterprises’ survival
approaches. It has a high t-value of 1% level of probability. This implies that the rich
small-scale processors adopted more of survival approaches than the poor smallscale food processors. This finding is in agreement with Knowler and Bradshaw
(2007) that observed that adoption of business small-scale strategies requires
sufficient financial wellbeing. Besides, higher income small-scale food processors
were less risk averse and have more access to information resources, a lower
discount rate and longer-term planning horizon. Therefore, they were more able to
take risks in the business.
Gender and age were negatively and insignificantly influenced adoption of
the small-scale food processing enterprises’ survival approaches. This could be
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
attributed to the fact that effect of age and gender in use of business survival
approaches is general location or technology specific (Adesina and Baidu-Forson,
1995; De Groote and Conlibay, 1998; and Quisumbing et al, 1995).
Table 3: Multiple Regression Parameter Estimates of Socioeconomic
Determinants of Use of Identified Survival Approaches
Variable
Semi-log
Double-log
Linear
Exponential
Intercept
1.121
-9.935
-2.042
(-2.361)*
2.986
(-1.909)
(2.428)*
(3.858)*
Age (X1)
0.003
-0.730
(-0.784)
-0.187
-0.013
-
(-0.874)
(-0.712)
(-
-0.086
-0.083
0.760)
Gender(X2)
0.008
-0.474
(-0.621)
(-0.480)
(-0.273)
(-
0.118)
Education (X3)
0.003
0.059
0.005
(2.248)*
(0.094)
-0.004
-
(-0.155)
(-
0.293)
Experience(X4)
0.013
0.922
(2.748)*
0.127
-0.049
(1.655)
(-1.702)
0.351
0.0018
(1.774)
Annual income(X5)
0.000005
1.515
(5.245)**
(5.221)**
(5.563)**
(5.360)**
R2
0.498
0.722
0.488
0.517
F-value
8.714
14.478**
8.156**
9.281
Note: Values in parenthesis are the t-values.
** Significant at 1% level of probability.
*Significant at 5% level of probability.
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
3.3
Constraints to the Growth of Small-Scale Food Process Enterprises
The study identified six major problems militating against the growth of
small-scale food processing enterprises in the area. The constraints are inadequate
capital, poor infrastructural facilities, seasonal scarcity and high cost of raw
materials, high cost of capital/poor access to loans, no direct government support,
underestimation of competition (table 4).
Table 4 revealed that 95.8% of the small-scale food processors indicated
inadequate capital as their major constraint to the growth of their food processing
enterprises. This affirms Osuala (1995) findings that initial capital investment of most
small-scale enterprises usually comes from personal savings of the owners derived
from wages that are often grossly inadequate. This source of fund is not enough for
starting, expansion and day-to-day running of the small-scale food processing
enterprise.
About 83.3% of the small-scale food processors reported that poor
infrastructural facilities are one of problems militating against growth of small-scale
food processing enterprises. Productive investments are supplemented by provision
of social and economic infrastructure (electricity, road, sanitation, water,
communication, etc), which facilitate and integrate economic activities. Availability of
these infrastructure facilities will facilitate technological innovation and better access
to inputs, markets and information. In reality, unsteady power supply, poor provision
of water, poor telecommunication, high fuel costs and poor state of road network
hamper business activities (Nwajiuba et al, 2012). Addressing these problems will
reduce to the barest minimum the overhead costs of the small-scale food processors
and boost their production, quality of products of sales.
Seasonal scarcity and high cost of raw materials constitutes one of the
constraints militating against growth of the small-scale food processing enterprise.
About 81.70% the processors identified this as constraint to growth of their food
processing business. This problem is common among small-scale business
enterprises in Africa (Nwajiuba et al, 2012). Most of the raw materials required by
processors are abundantly available during harvest period and scarce at off-season.
The scenario creates scarcity and high cost of the raw materials.
About 54.2% of the small-scale food processors indicated high interest rate or
high cost capital/poor access to loan as a problem affecting the growth of small-scale
food processing. Credit is important for stimulating of business productivity (Arifalo
and Ayilaran, 2012) and this is one of the major goals for any business enterprise.
Some studies attributed the inability of small-scale business entrepreneurs in getting
loans from financial institutions to lack of knowledge of the source of credit, lack of
knowledge in loan application, long bureaucratic processes and misuse of the funds
(Koyenikan and Abiola, 2011 and Nurbani et al, 2011). Financial institutions regard
small-scale enterprise as unsecure and costly business to deal with because they
lack required collateral and have the capacity to absorb only small amount of funds.
This makes many leading institutions unwilling to lend to small-scale entrepreneurs
in Nigeria.
The small-scale food processors (48.3%) indicated no direct government
support as one of the problems affecting the growth of small-scale food processing
business. This is typical for small-scale enterprises in the informal sector of Nigeria’s
economy. In addition, 37.5% of the food processors observed underestimation of
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
competition as a problem militating against growth of small-scale food processing
business. That is, this percentage of these food processors is unaware of any form
of competition in the business hence they failed to make efforts to increase their
share of market. This finding agrees with Achoja (2011) who stated that small-scale
agribusiness is relying on their major customers as a result of unawareness of
competition. He further described such business venture as being vulnerable as
competitors could easily sweep away such patronage which may affect the survival
and growth of their business.
Table 4: Percentage Distribution of Small-Scale food Processors based on
Problems Militating against the growth of their Food Processing
enterprises.
Problem
Frequency
Percentage
Inadequate capital
115
95.8
Poor infrastructural facilities
100
83.3
Seasonal scarcity and High cost of raw materials
98
81.7
Cost of capital/poor access to loans
65
54.2
No direct government support
58
48.3
Underestimation of competition
45
37.5
*Multiple responses recorded.
4.0
Conclusion and Recommendations
Thirteen different types of small-scale food processing enterprises were
identified and most common ones were garri processing, palm oil processing and
palm kernel cracking. Eight enterprises’ goals were identified namely profitability,
growth, productivity, innovation, survival market standing, social responsibility and
manpower development. Six key survival approaches were identified and they
include enterprise diversification/incorporation of enterprises, use of new market
outlets, and use of alternative sources of energy, improvement of products through
innovation, product differentiation and of formal institutional credit. The significant
socioeconomic variables that influence adoption of these survival approaches were
education, business experience, and annual income of the small-scale food
processors. Constraints to the growth of small-scale food processing enterprises
were inadequate capital cost of capital/poor access to loans, lack of direct
government support and underestimation of competition.
From these findings it is evidenced that the small-scale food processing
enterprises in the state are yet fully developed and its effective promotion by all the
stakeholders including the state government are yet to be given serious attention.
Therefore, the enterprises have no appreciable impact on both rural and state
economy. However, the study noted that small-scale food processing enterprises are
key to unlock the economic potentials of the state and Nigeria at large.
Proceedings of 31st International Business Research Conference
27 - 29 July 2015, Ryerson University, Toronto, Canada
ISBN: 978-1-922069-80-1
Based on these, the researchers therefore recommend that small-scale food
processors should efficiently and effectively embrace and promote the adoption of
the survival approaches which will in turn bring about the growth of their enterprises.
The policy makers, the state and local governments should support small-scale food
processing enterprises through formulation of policies and legislations which will
promote and sustain the adoption of the survival approaches for growth and survival
of the enterprises in the state. The governments should provide business enabling
environment for the small-scale processing enterprises to flourish without
hindrances. The entrepreneurs should form cooperative societies to enable them
pool the resources together so as to solve the problem of inadequate funds. It also
avail the opportunity of easily access to loans and enjoy the benefits associated with
economy scale through bulk purchases.
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